Why is it necessary to have PAN card?

PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more

 

a) Sale or purchase of any immovable property valued at five lakh rupees or more

 

b) Sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle]

 

c) A time deposit, exceeding fifty thousand rupees, with a banking company

 

d) A deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;

 

e) A contract of a value exceeding one lakh rupees for sale or purchase of securities;

 

f) Opening a bank account

 

g) Making an application for installation of a telephone connection (including a cellular telephone connection)

 

(h) Payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time

 

i) Payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;

 

(j) Deposit in cash aggregating fifty thousand rupees or more with a bank during any one day; 

 

(k) Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time